Cryptoassets continue steadily to attract increasing amounts of investment as the planet begins to master concerning the technology behind the assets. In fact, the data show the cryptocurrency market recorded 600% growth year-to-date and is worth $2.8 trillion during the time of writing. However, as large financial institutions such as Microstrategy and Grayscale continue steadily to invest huge amounts into cryptoassets, price volatility can be on the increase. This increasing volatility presents a challenge for amateur investors.
Mercor Finance is the first and only exemplory case of a decentralised automated copy trading platform. Mercor aims to democratise the planet of copy trading by giving investors the ability to invest via user-created trading strategies Decentralized Algorithmic Trading Marketplace. This grants individual investors access to similar tools which are commonly employed by those large institutional investors. But before we dive into Mercor’s solution, let’s have a closer consider the definition of automated copy-trading and why it’s the future of investing, both in the crypto space, and the mainstream financial sector.
Mercor Finance: A Closer Look
An automated trading strategy is some rules that determine when to buy and sell assets. When those rules are met, orders execute. That is defined as algorithmic trading. It’s several advantages over investing manually. First, it could operate 24/7 with little downtime, allowing amateur investors to capture probably the most value out from the 24/7 crypto asset market. Second, automated programs never deviate from the rules set in the trading strategies, theoretically making no mistakes. Finally, human emotion is never involved; a trait that will be likely the explanation for many to lose their entire portfolios.
Mercor allows developers to produce new trading strategies and customize those rules at will via the Mercor dApp’s developer dashboard. Investors using Mercor can invest funds into those strategies via the Mercor dApp’s investor environment.
Currently, there are 60 trading strategies which are readily available for users to invest in. Several have now been produced by high-level developers employed in investment or software firms, ensuring that the trading strategies have expert influence. Mercor Finance’s dApp is currently deployed on Binance Smart Chain. The project’s native token MRCR grants holders increased access to the Mercor platform, depending on the quantity of MRCR they stake via the Mercor dApp.
Users purchase MRCR to buy the most popular / highest performing algorithms. Naturally, as the user base increases, demand for access to these algorithms increase together with a consequent effect on the demand for MRCR. Moreover, Mercor features a unique staking mechanism, unseen in the DeFi space before and plans to increase the utility of MRCR further in the future.
Upon launch, the Mercor dApp greets investors with a delightful page containing links to a number of the core aspects of the protocol. This includes an academic portal, along with charts displaying the recent performance of a number of the trading strategies available on the dApp. On the dApp’s sidebar, the ‘Buy MRCR’tab offers users the ability to directly swap between BNB or BUSD and MRCR, or buy BNB with fiat. The ‘Stake MRCR’tab allows users to stake any MRCR tokens they hold to be able to access higher tiers of functionality on the dApp. Stakers of MRCR may also earn an annual percentage yield of up to 20%, paid in MRCR.
More information on the advantages of different tiers of access and the number of staked MRCR required to gain access to those tiers could be located on the ‘Tiers’page of the dApp.
Creating Algorithmic Success
The ‘algorithms’tab allows investors to gain access to most of the trading algorithms created on the platform and their details. Investors could see everything they have to know to effectively manage their automated trading strategies and portfolio. This includes their real-time trading history, profit or loss percentage, the assets it trades between, the developer who made it and the present amount of equity managed by it. The algorithms page is but one of the ways Mercor demonstrates its focus on transparency, an integral feature lacking in other automated trading strategy protocols.
The users dashboard provides informative data on the performance of the investments, such as their total amount invested on Mercor, total earnings from those investments and the present value of their portfolio. Finally, Mercor‘s comprehensive educational portal, containing user manuals and other information for both investors and developers, along with their social media marketing profiles, could be accessed via the dapp’s sidebar.
When creating an algorithm, developers first give it a few key parameters like a name, the couple of assets it trades between, a short description of how it works and some category labels. Algorithms created on Mercor are deployed as smart contracts to the BSC blockchain. After deploying a Mercor algorithm, the developer is given a secret API key allowing the algorithm to speak with Mercor’s API. The developer may then use Mercor’s Python package along with the API to write their algorithm.
Once an algorithm is deployed and ‘live’on the Mercor platform, the algorithm’s developer can track its performance via the dapp’s developer dashboard. Your home screen of Mercor’s developer dashboard shows developers their total earnings from the algorithms they’ve created, the sum total amount of equity managed by their algorithms, the sum total quantity of investors with funds inside their algorithms and quantity of created algorithms which are ‘live’on the dapp. There’s also a dining table on the developer dashboard, like the investor dashboard, which displays a few key statistics on the performance of every algorithm that the developer has created.
The team behind Mercor has been hard at the job establishing partnerships with investors and development teams alike, with firms such as BlockBank, Ramp and GD10 Ventures. Developers such as Bot Capital, Moonquant Capital and LX Trading are actively developing on the platform.
What Sets Mercor Apart?
While there are certainly a few other projects trying to tackle decentralized algorithmic trading, Mercor Finance has several advantages. First, Mercor features a first mover advantage in this space. The team behind Mercor Finance have now been trying to solve this dilemma for more than any development team, giving them intricate understanding of the difficulties in the area.
Second, Mercor creates a fascinating social dynamic, allowing investors to reach out to developers. This creates rapid iteration, allowing algorithms to be fine-tuned for maximum performance.
Finally, the performance of a number of the algorithms offered to investors on Mercor is noteworthy. Despite recent price downtrends across many crypto assets, the utmost effective performing algorithms on Mercor Finance have continued to generate positive returns for investors.In fact, several single-pair strategies have achieved around 70% return on investment within a single month, with multi-token trading strategies reaching over 1,200% annually.
Combined, the innovative platform has already been positioning itself at the forefront of development in the automated copy trading space.
Mercor is Developing at Pace
Mercor Finance has been on a developing spree in recent years. Their roadmap includes upgrading existing features within the Mercor dApp, increasing the utility of the MRCR token and partnering with an increase of organisations to help expand increase Mercor’s exposure in the DeFi space.
Mercor aims to incorporate the functionality for developers to produce multi-asset pair algorithms, essentially allowing developer created indices. Moreover, the MRCR token will become available via more decentralised and centralised exchanges, making it feasible for traditional market assets to be added into Mercor algorithms.
With one of these goals in your mind, Mercor Finance is proving to become a pioneer in both the crypto investing world and the algorithmic trading world.
For more on Mercor’s innovative service, native token and how it’s disrupting the cryptoasset investing world, go to the dApp here.